Hello traders, today’s article is about USD Index and its daily time frame.
On the daily chart of USD Index we see price trading within a higher degree wave C) up from 94.68 level, as part of a bigger, A-B-C move. We know that wave C) is also an impulse, therefore a five-wave recovery can be expected to unfold within the C) wave, before a top can be seen, and a reversal from the highs may follow.
Ideally, some resistance for the USD Index and its wave C) will be seen at the 104.0/106.5 region.
USD Index, daily
On the 4h charts of US index, we see a clear impulse in the making from the 94.6 area, which also suggests where the bigger trend is going; it is going to the upside. Also, despite the strong recovery, we know that nothing moves in straight moves, so temporary pullbacks may be expected. Now price may be unfolding a fourth wave, which can look for support/bullish turn at the 101.5/100.7 zone. Once we see a new rise from the mentioned support zone in five waves of a lesser degree, that is when a fifth wave will be underway.
USD index, 4h